Except groundnut oil, all edible oils extended decline in Mumbai on Tuesday.

Groundnut oil rose by Rs 5, extending Monday's gain of Rs 5 on firm reports from producing centres. Foreign market, especially Malaysia and Chicago, ruled weak. Malaysian crude palm oil (CPO) futures closed lower by 33,34,29 ringgits a tonne for July, August and September. Tracking the bearish move, palmolein in the local market declined by Rs 2, soya oil by Rs 4, rapeseed oil by Rs 3 and cotton oil by Rs 5 for 10 kg. A leading broker said CPO futures on Bursa Malaysia Derivatives (BMD) extended losses for second day on Tuesday.

Mr Mahendra Joshi, an oil miller from Bhavnagar district, said in Gujarat millers are facing extreme shortage of nuts for crushing, as exporters are buying HPS groundnuts with premium. “Secondly, there is a good demand for seeds from farmers for sowing purpose on expectation of active monsoon soon. The same situation is prevailing in Karnataka, Tamil Nadu and Andhra Pradesh. Brand makers and stockists were buyers for quality groundnut oil, rushing in before monsoon. Disparity for mills may lead to further rise in price of groundnut oil,” he said.

In Rajkot, groundnut oil telia tin and loose (10 kg) price ruled steady today at Rs 1,355 and Rs 875 respectively.

Analysts said India's oilseeds and soya oil futures extended loses on third consecutive day on early arrivals of monsoon in western Maharashtra, Gujarat, Madhya Pradesh, which have raised hopes of the good oilseeds harvest in 2011-12.

In Mumbai, stockists continued to prefer taking delivery of old contracts and kept away from new buying. Easy supplies in the ready market kept speculators away. Arrivals of monsoon in India and expectation of higher kharif oilseeds sowing will increase the pressure in coming days. In the absence of new demand, resellers sold palmolein at Rs 575 to needy buyers. Liberty was quoting palmolein at Rs 581-583. Ruchi's rates were: for palmolein Rs 580, for soya refined oil Rs 635 and for sunflower oil Rs 695. Allana's palmolein was at Rs 581.

Malaysia's BMD CPO July contract was at MYR3,371 (MYR3,404), August at MYR3,354 (MYR3,388) and September at MYR3,352 (MYR3,381) a tonne. Indore NBOT soya oil June contract closed at Rs 650 (Rs 651.10) and July at Rs 653.40 (Rs 655).

Mumbai commodity exchange spot rate (Rs 10 a kg): Groundnut oil 880 (875), soya refined oil 635 (639), sunflower exp. ref. 650 (650), sunflower ref. 700 (700), rapeseed ref. oil 664 (667), rapeseed expeller ref. 634 (637), cotton ref. oil 635 (640) and palmolein was 576 (578).

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